Commodity trading covers any of a range of markets such as Currencies
– Futures – Direct Commodities like cotton, wheat and soya bean and basically anything that has a tradeable market.
This type of trading is normally very active and can have very high returns if you can find a good trader in any one of these markets.
It can be useful to combine this type of investment, which is normally more aggressive, with a medium term, medium risk investment such as property.
No matter what the investment class, they all should be treated with an equal amount of due diligence and management. Structuring the investment portfolio that best suits your needs is dependent upon your risk tolerance, personality, time scale, management style, and your need for either income and/or growth.
There are many financial tools that can assist you in structuring an investment split which is tailored for you. Some people work well with computer models – others prefer a more manual pen and paper approach.
What is important in everyone’s portfolio structuring decisions is to know exactly where you are starting. What investments you currently have and intend to hold, affects what types of investments you should be considering in the future.
We always recommend that you seek professional advice as this blog is for general information only